How do I pay myself as a contractor?

Chris Andreou

How do I pay myself as a contractor? Guide

A contractor working through their own limited company can pay themselves by drawing dividends and a salary.

There are a few factors that need to be considered when deciding the best way to go about this. For example, if your contract is deemed to fall inside IR35, you will be restricted to paying yourself a salary.

On the other hand, if your contract falls outside of IR35, you'll then have the option of drawing a salary and dividends to maximise tax efficiency.

If you're contracting through an umbrella company, you'll receive a salary from your provider (similar to how you'll be paid if you were a permanent employee).

Additional resources:

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How do I pay myself as a contractor?

Chris Andreou

March 19, 2022

How do I pay myself as a contractor? Guide
Contractors

A contractor working through their own limited company can pay themselves by drawing dividends and a salary.

There are a few factors that need to be considered when deciding the best way to go about this. For example, if your contract is deemed to fall inside IR35, you will be restricted to paying yourself a salary.

On the other hand, if your contract falls outside of IR35, you'll then have the option of drawing a salary and dividends to maximise tax efficiency.

If you're contracting through an umbrella company, you'll receive a salary from your provider (similar to how you'll be paid if you were a permanent employee).

Additional resources:

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